Gold Stocks

[argent_pur]

I'm thinking about buying (and holding) a basket of mining stocks (via Tocqueville Gold Fund) since stock prices are falling and I can pick up shares cheaper now than I could several months ago. I'm asking you guys to put on your Austrian lenses, and tell me what you think about this idea. Firstly, I have a core position in bullion and understand that stocks are not a substitute for the metal. But, I'm thinking about long-term currency issues, possible political unrest here, and how our structural financial issues will affect the prices of ALL stocks.

My thinking is that since many mining companies have operations in several continents, I get some int'l exposure, and should the dollar tank, I'd be better off with these securities than domestic stocks. Give it to me straight, what do you guys think?

[beauanderos]

TGLDX is one of the best gold funds around, holding gold bullion in addition to equities. I am playing NUGT right now, it's an ETF that attempts to double the performance of GDX. One thing I don't like about Tocqueville is it has a hefty front end load.

[argent_pur]

I looked at the fact sheet and it says there is no sales charge, front end or deferred. Yahoo finance said the same thing.

[beauanderos]

I looked at the fact sheet and it says there is no sales charge, front end or deferred. Yahoo finance said the same thing.

They may have modified it then. That was the only thing I didn't like about it when I looked at it about three years ago. They certainly have good holdings:

Top Ten Holdings as of 6/30/2011
% of Total Assets

Physical Gold 5.74%

Goldcorp, Inc. 5.39%

Osisko Mining Corporation 5.11%

Ivanhoe Mines Ltd. 5.06%

Newmont Mining Corporation 3.72%

Silver Wheaton Corporation 3.50%

Gold Resource Corporation 3.38%

Randgold Resources Limited 2.90%

Royal Gold, Inc. 2.63%

IAMGOLD Corporation 2.51%